The third advance tax instalment for tax year 2026-27 is due on 15 December 2026. By then, you should have paid 75% of your estimated tax for the year. Salaried people with no other income are usually covered by TDS. Freelancers, professionals, traders, landlords, and anyone who has sold shares, mutual funds or property this year often aren't, and they find out only when the interest shows up in their return.
Who has to pay advance tax
Anyone whose tax for the year, after TDS and TCS, is likely to be ₹10,000 or more. That commonly includes:
- freelancers, consultants, doctors, lawyers and other professionals;
- shop owners, traders and other businesses;
- landlords with significant rent;
- salaried people with large interest, rent or capital gains on top of salary;
- anyone who sold shares, mutual funds, gold or property at a gain this year.
Not required: resident senior citizens (60 or over) who have no business or professional income.
The four instalments
| Due date | Cumulative tax to be paid |
|---|---|
| 15 June 2026 | At least 15% |
| 15 September 2026 | At least 45% |
| 15 December 2026 | At least 75% |
| 15 March 2027 | 100% |
If you have opted for the presumptive scheme (sections 44AD, 44ADA or 44AE in the old numbering), you can pay the full amount in one instalment by 15 March 2027.
What happens if you don't pay
- Late instalments: 1% a month on the shortfall in each instalment (section 425 of the new Act, earlier 234C).
- Less than 90% paid by 31 March: 1% a month on the unpaid tax from April until you pay (section 424, earlier 234B).
On ₹3 lakh of tax with nothing paid during the year, the interest can easily reach ₹40,000 to ₹50,000 by the time the return is filed. It cannot be waived.
Sold shares, funds or property this year? Plan now
Capital gains are the most common reason salaried people miss advance tax. You don't have to guess them at the start of the year: advance tax on a capital gain is due in the instalments that fall after the sale. If you sold in October, the tax on that gain should go in with the 15 December and 15 March instalments.
Long-term gains on listed shares and equity funds are taxed at 12.5% above ₹1.25 lakh a year, and short-term gains at 20%. Property and gold held long-term are taxed at 12.5%. Our notes on selling a flat in Noida and LTCG and STCG rates have the details.
Working out the 15 December amount
- Estimate your income for April 2026 to March 2027: salary, business or professional income, rent, interest, capital gains.
- Work out the tax under the regime you will use, including surcharge and 4% cess.
- Subtract the TDS and TCS already deducted or expected for the year (check your AIS and Form 26AS).
- Take 75% of the balance and subtract what you paid in June and September. That is what is due by 15 December.
Example: a Noida-based consultant expects ₹24 lakh of professional income under the new regime and ₹1.5 lakh of TDS from clients. Tax on ₹24 lakh, with cess, is about ₹3.12 lakh. After TDS, about ₹1.62 lakh is payable for the year. By 15 December, 75% of that, about ₹1.22 lakh, should have been paid in total.
How to pay
- Log in to the income-tax e-filing portal and use e-Pay Tax.
- Choose the tax year 2026-27 and the payment type Advance Tax.
- Pay by net banking, UPI, card or at a bank counter. Keep the challan: its details go into your return.
- Pay a day or two before the 15th. Bank and portal delays near the deadline are common.
How Vitt-Marg helps
We are in Sector 63, Noida. We estimate your income for the year, including capital gains, work out each instalment, and file your return with the advance tax and TDS correctly matched. See our ITR filing services in Noida.
General information, current as of October 2026, not advice for a specific case. GST and income-tax rules change often — check with us before acting on it.